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The Securities and Exchange Commission (SEC) has again reiterated its zero tolerance to Ponzi scheme operations in the domestic economy, noting that its presence is cancerous to growth and development of investment.
To this end, the commission said its re-engineered synergy with other agencies of government has yielded great success, even as it said investors should be mindful of bogus promises on return on investments.
The Director General SEC, Mr, Lamido Yaguda made this remarks on Friday during the post 3rd Quarter Capital Market Committee (CMC) meeting briefing held in Lagos.
According to him, Ponzi scheme operators trade in stock is to hoodwink investors with mouth watering return on investment, but that the commission with its awareness pursuit and synergy with the anti-fraud agencies of government, activities of ponzi operators has greatly being checked.
On the revised Capital Market 10years master plan 2021-2025 launched by the Minister of Finance, Budget and National Planning, Dr. Zainab Shamsuna Ahmed, which formed the major highlight of the CMC meeting, the SEC boss said it is aimed at correcting assumptions which are out of tunes with the current realities in the capital market.
“Management of the Commission reiterates its commitment to the public on the full implementation of the initiatives of the revised Capital Market Master Plan which will form the basis of the policy direction of the Commission for the coming years.
It will be recall, the Capital Market 10years Master Plan which was 1st unveiled on November 2014, is expected to help refocus the market and double its size over time and grow the economy.
The DG SEC, also informed that the Chairman of the Capital Market Master Plan implementation Council (CAMMIC), Prof. Koyinsola Ajayi, had inundated that every plan requires review and realignment from time to time to keep it relevant, even as he reiterated the need to work together across the financial sector ensure that bottlenecks are removed and policy gaps are addressed,
“The meeting emphasized the increasing importance of Fintech, Sustainable Finance, Financial Inclusion and Non-Interest Finance. The Executive Management team of the SEC reiterated its commitment to continue creating awareness, imparting knowledge and engendering public participation in these topical areas”.
“Capital Market Operators were informed of the approval granted by the Minister of Finance, Budget and National Planning on Non-Interest Finance (taxation) regulation, which has already been gazetted. This has important implication for the market towards encouraging new issuances of Non-Interest Capital Market products and services. It is expected that Issuers and Market Operators will take advantage of this by creating more non interest finance products.
“The attention of Fund Managers was drawn to issues that arose from the Commission’s recently concluded inspection of Fund/Portfolio Management operations. Several Fund Managers managing Discretionary and Non-Discretionary Products and Portfolios were yet to seek a ‘No Objection’ of their products and portfolios from the Commission, which is a violation of the Commission’s Rules.
Speaking on some major steps taken by the Commission to address some anomalies in the equities market, Mr. Yuguda said “the Commission mentioned that some Fund Managers were still in the habit of holding on to clients’ funds and securities. This is also a clear violation of the Commission’s Consolidated Rule 95 (1-2). Fund Managers were reminded that all funds and securities of clients being managed by their firms must be vested with the custodians.
On the unclaimed dividend which current value is put at N170 billion during the 2021 fiscal year, Mr. Yuguda said the unclaimed is due to the fact amongst others, that investors are yet to key into the e-dividend policy drive of the commission, even as he commended the recent intervention of the House of Representatives Committee on Capital Markets and Institutions on unclaimed dividends.
“The Committee is investigating the rising value of unclaimed dividend and unremitted withholding tax on dividends. The Commission expressed its readiness to provide all the necessary support to the Committee to enable it carry out its assignment”, he added.
